§ Mr. MeacherTo ask the Secretary of State for Social Security to how much the figure of £35, above which there is abatement of unemployment benefit for occupational pensioners, would have increased to have kept pace with(a) the retail prices index and (b) earnings since it was fixed at that level; how many people received (i) no unemployment benefit and (ii) reduced unemployment benefit because they have an occupational pension exceeding £35 per week at the most recent available date; and what would be the (1) gross cost and (2) net cost of abolishing this rule.
§ 1. Mr. BurtThe limit of £35 per week was introduced in April 1981. If it had been increased in line with increases in(a) the retail prices index and (b) earnings between April 1981 and April 1992, the present limit would he £65 and £84 respectively.
The table shows the numbers of people whose unemployment benefit is abated because they receive an occupational or personal pension exceeding £35 per week.
Unemployed claimants whose unemployment benefit is reduced or extinguished due to receipt of an occupational or personal pension exceeding £35 per week Thousands Unemployment benefit reduced 17.2 Unemployment benefit extinguished 9.2 Notes:
Source: Half Yearly Analysis of Unemployed Claimants.
2. No separate figures are maintained of recipients of occupational and personal pension.
The gross cost of abolishing the abatement rule is estimated to be £40 million a year at 1992–93 prices. It is estimated that the net cost will not differ significantly from this figure.
§ Mr. MeacherTo ask the Secretary of State for Social Security how many people received(a) no and (b) reduced unemployment benefit because a spouse's occupational pension is treated as earnings for the purposes of earnings rules for unemployment benefit in the 46W most recent available period; and what would be the (i) gross and (ii) net additional cost of abolishing that treatment of a spouse's occupational pension.
§ Mr. BurtThe personal rate of unemployment benefit is unaffected by a spouse's occupational pension. Adult dependency increases—ADIs—of unemployment benefit are extinguished when a spouse's earnings, including any occupational pension, exceed £26.20 a week. Information on the number of ADIs extinguished in this way is unavailable and could be obtained only at disproportionate cost. The cost of excluding occupational pensions from the earnings rule is therefore impossible to estimate.